Borrowed 250,000 Won → 150 Million Won... '5000% Murderous Interest Rate'

Accused of Unregistered Loan Business as 'Juim' Position
Sexual Violence Threats Against Female Debtors Included

Two women in their 20s, who were managers including the spouse of the head of the illegal loan shark crime group known as the 'Gangsiljang Organization,' were sentenced to prison for amassing huge illegal profits through murderous interest rates reaching 5000% and illegal debt collection.

On the 10th, Judge Jeong Ji-won of the Chuncheon District Court Wonju Branch Criminal Division 3 announced that A and B, who were indicted on charges of joining and participating in a criminal organization, were each sentenced to 2 years and 6 months in prison with a 4-year probation, and 2 years in prison with a 3-year probation, respectively. They were also ordered to perform 240 hours and 200 hours of community service, respectively, and were fined 83.25 million won and 41.6 million won.

A, the spouse of Gangsiljang, the head of the illegal loan shark crime organization, was tried on charges of unregistered lending under the title 'Assistant Lee' from March 2021 to last March, and B was tried under the title 'Assistant Ye' from March last year to last February.

During this period, A lent 2.169 billion won over 5,592 transactions, and B lent 1.993 billion won over 538 transactions, both charging murderous interest rates of 700% or over 5000% annually.

Moreover, during the debt collection process in collusion with organization members, A was found to have threatened debtors 337 times, and B 306 times.

On the 9th, President Yoon Seok-yeol is speaking at the Illegal Private Loan Livelihood Field Meeting held at the Financial Supervisory Service in Yeouido, Seoul.
[Photo by Yonhap News]

The Gangsiljang Organization, including these two, provided small, short-term loans by lending 200,000 won and demanding repayment of 380,000 won a week later, accumulating over 3 billion won in illegal profits through interest rates exceeding 5000%.

The court stated, "They joined and participated in a criminal organization formed to gain enormous profits through illegal debt collection and committed each crime in collusion with organization members. However, the defendants showed remorse and performed assigned duties while receiving limited information under the control of the head," explaining the sentencing rationale.

It added, "The sentence was determined considering that the defendants showed remorse and performed assigned duties while receiving limited information under the control of the head."

Victims Who Lost Children and Attempted Extreme Measures

A, the spouse of Gang, the head of an illegal loan shark criminal organization, was prosecuted for unregistered lending business under the title of 'Ijooim' from March 2021 to last March, and B was prosecuted for unregistered lending business under the title of 'Yejuim' from March last year to last February.
[Photo by Gangwon Police Agency]

A victim in her 20s attempted extreme measures after a 250,000 won loan ballooned to a debt of 130 million won in four months. A woman in her 30s, who was frequently threatened, reportedly lost her child and was diagnosed with cancer. They also frequently issued sexually violent threats against female debtors.

Under the current Interest Rate Restriction Act, contracts exceeding the legal maximum interest rate (20% per annum) are not invalidated. Borrowers must repay the principal and interest up to 20%. However, interest exceeding 20% per annum is invalid. If a lending company received interest exceeding 20%, the borrower can claim a refund through litigation.

Meanwhile, according to data submitted by the Financial Supervisory Service (FSS) to Rep. Seo Beom-su of the People Power Party, the number of illegal private finance damage reports and consultations received by the FSS Illegal Private Finance Damage Reporting Center in the first half of this year was 6,784 cases. This was the highest in five years since 2019 for the first half of the year.

The number of reports and consultations related to illegal lending and similar deposit-taking received by the authorities' damage reporting center reached 10,062 cases through the third quarter this year, a 23.6% increase compared to the same period last year. Recently, as savings banks and lending companies reduce loans due to increased funding costs, the risk of low-credit borrowers turning to illegal private finance is growing.

This content was produced with the assistance of AI translation services.